Housing Finance trims quarterly loss to Ksh.192 million
Lender Housing Finance (HF) has cut its losses by 70 per cent in the quarter ended March with its net loss coming down to Ksh.191.8 million from Ksh.633 million last year.
The significant loss reduction is largely attributable to a falling cost base which helped offset a deceleration in income streams.
HF cut its non-interest related expenses to Ksh.787.7 million from a higher Ksh.827.2 million with the trim anchored mostly from a 45.8 per cent cut to loan loss provisions at Ksh.74.6 million.
At the same time, the lender trimmed its interest expenses to Ksh.538.1 million from Ksh664.1 million.
In contrast, the bank saw its total operating income narrow by 27 per cent to Ksh.609.3 million with both interest and non-funded income revenue heads shrinking.
Total interest income came down to a flat Ksh.1 billion from Ksh.1.2 billion in March last year while non-funded income (NFI) fell by 46.7 per cent to Ksh.135 million.
The improved performance for the lender is a result of ongoing cost containment measures to push the bank back into profitability in the long run.
During the period, HF’s exposure to bad loans was muted with gross non-performing loans (NPLs) shrinking to Ksh.10.5 billion from a greater Ksh.12.2 billion last year.
Housing Finance remains well above the operational thresholds issued by the Central Bank of Kenya with its core capital at Ksh.2.8 billion and liquidity ratio at 20.6 per cent.